LAS VEGAS\u2014The continued rise of streaming services providing premium video without advertising avails is a big concern but it\u2019s going to change within a couple of years. That\u2019s because both Amazon and Netflix are headed toward ad-supported content, VMLY&R chairman David Sable predicts.<\/p>\n

The bottom line, Sable explains in this interview with Beet.TV at CES 2019<\/a>, is that TV advertising will need to rise to the quality level of the programs themselves.<\/p>\n

Noting that he predicted 10 years ago that Amazon would have brick-and-mortar stores, Sable says, \u201cNetflix within the next two years will have advertising. They have to, in my view. Amazon\u2019s already going to be there.”<\/p>\n

This means \u201cwe\u2019re going to have more and more opportunities to put more and more great advertising\u201d around premium content.<\/p>\n

A once widely held view that with the rise of digital most video content would be user-generated hasn\u2019t quite worked out, according to Sable<\/a>, citing \u201cthe cat peeing on your shoes that everybody would share. That\u2019s such crap. It\u2019s exactly the opposite.\u201d<\/p>\n

In recent years, producers who once shunned TV are flocking to its seemingly endless channels. \u201cThey all want to be back in TV because the budgets are high, the production quality is huge,\u201d Sable says.<\/p>\n

Of course, someone has to pay for all that content and \u201cadvertising has to be as good as the content that you put it around.\u201d<\/p>\n

While for many of Y&R\u2019s clients TV \u201chas to be that branded piece, to create the brand image,\u201d more companies beginning to understand that \u201cAmazon is DTC and so is e-commerce.\u201d<\/p>\n

With a drive toward direct-to-consumer even in staid consumer packaged-goods categories, there\u2019s more concern now about \u201chow do my ads look different, how do they sound different, what\u2019s the call to action, what\u2019s the offer? What\u2019s the pricing. These have to be in there,\u201d Sable says. \u201cYou see it with the Warby Parkers, you see it with the Caspers.”<\/p>\n

Even companies like Facebook and Amazon are buying \u201ca ton\u201d of traditional TV. \u201cHow come they\u2019re not just on Google or Facebook or Amazon? Because they\u2019re smart.\u201d<\/p>\n

Asked about the proceedings at CES, Sable prefers to think of the annual event as more about innovation than technology per se. While he was impressed by a new LG screen that folds up like a window shade, he\u2019d like to see more visibility around 5G cellular service \u201cbecause so much of what we\u2019ve seen is going to be dependent on 5G.\u201d<\/p>\n

This video is part of Beet.TV coverage of CES 2019. The series is sponsored by NBCUniversal. For more coverage, please visit this page<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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